Question
Marcus Rush has S corporation stock with an adjusted basis of $5,000 and he has a $4,000 loan to the corporation that is still outstanding.
Marcus Rush has S corporation stock with an adjusted basis of $5,000 and he has a $4,000 loan to the corporation that is still outstanding. His pro rata share of business income for the year is $1,000, and his pro rata share of the corporation's separately stated items of loss and deduction is $6,000. At the end of the year the corporation distributes $6,000 to Steve. How much of the $6,000 of separately stated items of loss and deduction may Marcus deduct?
| a. | $0 | |
| b. | $4,000 | |
| c. | $5,000 | |
| d. | $6,000 |
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QuickBooks A Basic Guide To Learn The Principles Of Bookkeeping And Accounting For Beginners
Authors: Marcus Smalling
1st Edition
1655431773, 978-1655431777
